BC Private Mortgage Directory

Private Mortgage BC — When the Bank Says No, Equity Can Still Say Yes

BC private lenders approve based on your property equity and exit strategy, not just your income or credit score. Rates from 6.99%. Funding in 5–10 business days.

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Reviewed by Mark T., Mortgage Analyst · Last Updated: May 2026
6.99–9.49%
1st Mortgage Rate
Strong equity, metro BC
8.49–13.99%
2nd Mortgage Rate
Up to 80% CLTV
75–80%
Max LTV
Metro Vancouver/Victoria
5–10 days
Funding Speed
Rush available

Rates as of May 2026. Actual rates depend on LTV, property type, credit profile, and lender. Not a rate guarantee.

Who Uses BC Private Mortgages?

Private mortgages serve borrowers who fall outside conventional bank criteria — not because their situation is bad, but because banks have rigid rules.

Bank declined your application
Income documentation issues, self-employment, recent credit events, or non-standard properties.
Need funding fast
Private lenders can fund in 5–10 business days. Banks take 3–8 weeks.
Equity-rich but income-challenged
Private lenders approve based on your property equity and exit strategy, not just your T4.
Non-standard property or situation
Rural properties, leasehold, commercial-residential mix, or complex ownership structures.

What BC Private Lenders Look At

Property equity: Most require 25–35% equity cushion (65–75% max LTV). Metro Vancouver properties are preferred.
Exit strategy: How will the loan be repaid? Refinance, sale, or conventional renewal are the most common.
Property condition: Marketable and insurable. Unique or rural properties face higher scrutiny.
Loan amount: Most BC private lenders prefer $50K–$2M. Sub-$50K loans are harder to place.
Credit history: Reviewed but not the primary factor. Active collections or undischarged bankruptcy may disqualify.
Income: Stated income is acceptable for many lenders. Rental income, business income, and NOA are all considered.

Cost Example

Property value$900,000
First mortgage balance$520,000
Available equity (to 80% CLTV)$200,000
Private 1st mortgage requested$150,000
Rate8.49% (interest-only)
Monthly interest payment$1,061/mo
Lender fee (2%)$3,000 (one-time)
Term12 months

This is a hypothetical illustration only. Actual rates, fees, and approval depend on individual circumstances. BCPrivateLoans.ca does not provide mortgage advice.

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Risks to Understand

Higher rates than banks — private mortgages cost more. Understand the full cost before proceeding.

Short terms (6–24 months) — you must have a clear exit strategy before the term ends.

Lender and broker fees add to your cost — always get a full fee disclosure in writing.

Default risk — private lenders can and do enforce their security. Missed payments can lead to foreclosure.

Not all lenders are equal — always verify any broker arranging your mortgage holds a valid BCFSA licence.

Frequently Asked Questions

What is a private mortgage in BC?

A private mortgage in BC is a loan secured against real property, funded by a private individual or company (not a bank or credit union). Private lenders operate outside the federally regulated banking system, which means they can set their own approval criteria. They typically approve based on property equity and exit strategy rather than income and credit score. Terms are usually 6–24 months with interest-only payments.

What are current private mortgage rates in BC?

In May 2026, BC private mortgage rates range from 6.99% to 13.99% annually. First mortgages from strong borrowers with low LTV start around 6.99–8.49%. Second mortgages and higher-risk files range from 8.49–13.99%. Add lender fees (1–3%) and any broker fees (1–2%) to calculate your true cost of borrowing.

How fast can I get a private mortgage in BC?

Most BC private mortgage transactions close in 5–10 business days once an appraisal is complete. Rush closings in 48–72 hours are possible for straightforward files with existing appraisals, though they typically carry a premium. Compare this to 3–8 weeks for a conventional bank mortgage.

What is the maximum LTV for a BC private mortgage?

Most BC private lenders will lend up to 65–75% of the appraised property value for first mortgages, and up to 75–80% combined LTV (CLTV) for second mortgages. Metro Vancouver and Victoria properties typically qualify for higher LTV ratios due to strong market liquidity. Rural or unique properties may be capped at 55–65% LTV.

Are BC private mortgage lenders regulated?

Private mortgage lenders in BC are not regulated the same way as banks. However, mortgage brokers who arrange private mortgages must be licensed with the BC Financial Services Authority (BCFSA). Always verify that any broker arranging your private mortgage holds a valid BCFSA licence. BCPrivateLoans.ca is a directory service — we do not arrange mortgages or provide mortgage advice.

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BCPrivateLoans.ca is an educational directory and referral-intake platform. We are not a mortgage broker, lender, or financial advisor. We do not approve loans or guarantee funding.

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Amira

BC Loan Adviser · Online

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Hi! 👋 I'm Amira, your BC loan adviser. Whether you need a personal loan up to $35K or a private mortgage, I can help you find the right option. What can I help you with today?

Educational info only · Not a licensed broker